PSI Energy granted electric rate increase

PSI Energy, the Indiana unit of Cinergy Corp., was granted an 8 percent increase in electric rates Tuesday by the Indiana Utility Regulatory Commission.

The rate increase, which Cinergy said was needed to cover investments in new generating plants, amounts to about $107 million annually. A series of cost-recovery moves, approved by the commission, will allow the utility to collect a total of $140 million annually, Cinergy said.

Cinergy, which is also seeking its first electric rate increase in a decade in Ohio, initially asked for a 15 percent rate increase, or $179 million, in Indiana, where it has 700,000 customers.

Omnicare adds newcomer to board

Covington-based Omnicare Inc., which provides pharmaceutical care for the elderly, Tuesday elected former Ernst & Young International audit partner Amy Wallman to its board of directors.

Wallman, a 17-year Ernst & Young veteran, was the only newcomer among a slate of nine directors elected to one-year terms at Omnicare's annual meeting.

Shareholders also approved Omnicare's 2004 stock and incentive plan and ratified PricewaterhouseCoopers as independent accountants.

Investment firms fined for alleged impropriety

WASHINGTON - Three major investment firms were fined a total of $15 million by securities regulators Tuesday for alleged improper distributions of hot new stocks to certain customers in return for inflated commissions.

The National Association of Securities Dealers, the brokerage industry's self-policing organization, announced the civil fines of $4.95 million against Bear Stearns, $5.29 million against Deutsche Bank and $5.39 million against Morgan Stanley.

Tobacco buyout could be added to tax bill

WASHINGTON - Supporters of a tobacco buyout are considering a tax bill as a way to give leaf growers some relief.

House Majority Leader Tom Delay told reporters Tuesday that lawmakers were looking at possibly attaching a tobacco quota buyout to the corporate tax bill, which is expected to be considered by House lawmakers next month.

A buyout would overhaul the federal tobacco program, which sets price and production controls on U.S. leaf. It also would pay tobacco farmers to give up their federal allotments dictating how much leaf they can sell.

Staff and wire reports